National Bank Records 82 Percent Dip in Profit after Tax in 2Q16

National Bank of Kenya Limited (NSE: NBK) released their 2Q16 results, recording an 82% dip in profit after tax (PAT) to KES 311.29Mn from KES 1.73Bn in 2Q15. Net Interest Income was up 16.9% to KES 4.44Bn from KES 3.79Bn in 2Q15. Non-interest income plummeted by 42.0% to KES 1.37Bn from KES 2.359 in 2Q15, the downswing attributable to a 19.8% decrease in other fees and commission, a 22% decline in forex income and a 68.7% decline in other income. Interest expense declined by 3.2% to KES 2.53Bn from KES 2.62Bn same period last year. Operating expenses went up 46.1% y-o-y to KES 5.36Bn due to a significant increase in loans provision by 385.8% to KES 1.62Bn. Loan and advances went down 9.13% to KES 64.78Bn while customer deposits shrank by 1.6% to KES 95.57Bn.

Equities

The bourse closed on a bleak state, as depicted by all the market indicators which closed in the red. The Nairobi All Share Index closed Thursday’s trading session 0.21% higher to 143.63 points. The NSE 20 Share index shrank by 0.38% to close at 3450.10 points while the NSE 25 Share Index lost 0.21% to perch at 3921.41 points. Market capitalization contracted to KES 2.068 trillion from KES 2.073 trillion registered on Wednesday. Equity turnover was on an upward trend, advancing by 16.63% to close at KES 0.270 billion. Market breadth, a measure of market performance, indicated that the performance had weakened, with the number of decliners -22 outweighing the number of advancers -15.

Equity Market Highlights

Safaricom Ltd (NSE: SCOM) was the most actively traded stock today accounting for 24.00% of the total market value traded activity. KCB Group Ltd (NSE: KCB) also registered high levels of activity, accounting for 22.78% of the total market turnover.

Mumias Sugar Ltd (NSE: MSC) capped the gainers chart, posting a 4.71% increase to close the day at KES 1.25. Uchumi Supermarkets Ltd (NSE: UCHM) followed suit, registering a 3.90% gain to close at KES 4.00.

Kakuzi Ltd (NSE: KUKZ) emerged as the top laggard of the day, plummeting by 7.75% to close at KES 250. Olympia Capital Holdings Ltd (NSE: OCH) similarly lost ground by 6.82% to close at KES 2.05.